Solana (SOL): where the potential bearish threat lies

The Solana (SOL) price is undergoing a short-term correction, which caused the altcoin to lose the chance to reach the $200 mark

Despite the correction, there is a possibility that Solana (SOL) price will start rising again as the market is giving mixed signals.

Solana is set to move sideways

The price of the Solana project token fell to $166 at the time of writing, dropping below the critical $169 mark. This has reinforced the bearish bias, as seen in the moving average convergence-divergence indicator (MACD).

MACD is a momentum indicator that compares the dynamics of the 12-day and 26-day exponential moving averages (EMA). The index consists of two lines, the MACD line and the signal line. When the short-term moving average goes below the long-term moving average, it is considered a sell signal. Solana formed the first bearish crossover in almost four weeks, which is not a good sign for the price.

Additionally, the altcoin has a very high correlation (0.93) with bitcoin. This can be both an advantage and a disadvantage for SOL. The BTC rally plays into Solana's hands. However, if BTC falls, SOL could also be at risk. Currently, the latter option seems more likely. This is because bitcoin recently lost critical support at $68,500 and could continue to fall.#SolanaUSTD #altcoins #Solana_Blockchain